2017 ANNUAL REPORT Engineering the Future – since 1758. MAN SE TEMPO We will see more changes in the next ten years than we have in the last fi ve decades. Innovative solutions in the fi elds of transportation and energy are becoming increasingly important, and demand for them is growing rapidly. We are putting this development to good use – with new concepts and products, cooperation initiatives and services. We are advising major cities on how to develop a modern transportation infrastructure. We are automating the transportation of goods. We are moving away from components to become a system provider, a one-stop shop for drives along with monitoring, consulting, and other types of services. If we want to meet the challenges of the future successfully, we have to rise to them today – of that much we are sure. This is why we are engineering the future of MAN and our customers right here, right now. By upping the tempo. Joachim Drees, Chief Executive Officer of MAN SE TEMPO – The 2017 Annual Report Magazine P. 04 A CITY IN MOTION Setting the course for the future: Munich is aiming to electrify its entire public bus network. MAN Truck & Bus is on hand to provide help and advice for the transition. P.10 QUIET REVOLUTION A modern way to manufacture: the MAN Latin America smart factory in Brazil has reached an automation level of 60%. Starting in 2020, it will manufacture the e-Delivery – a fully electric truck for urban logistics. P.12 ON THE GO Seizing opportunities: a road test involving MAN Truck & Bus trucks driving on the A9 in a platoon will begin in 2018. Platoons make the roads safer, while the minimal distance between the vehicles saves fuel, emissions, and space. P.16 HIGHLIGHTS 2017 Lowering fuel consumption: MAN’s mechanical engineering companies make their customers more profitable – be it with the help of gigantic testing systems for aircraft engines or new propulsion systems for ships. P. 18 QUITE THE SMART PART Making the most of new technology: MAN Diesel & Turbo is the world’s first manufacturer to use 3D printing for gas turbine components. An interview with Dr. Christopher Antes, Senior Vice President for Turbomachinery. P.24 QUICK AND EFFICIENT Driving the energy revolution: MAN Diesel & Turbo is building a comprehensive gas-engine combined heat and power plant in Stuttgart-Gaisburg that can be turned on and off quickly depending on the energy supply. P.26 HIGHLIGHTS 2017 Making customers’ dreams come true: MAN Truck & Bus presents tailored transportation solutions in the form of new truck driver cabs, the TGE, a powerful tractor engine, and the new edition of the MAN Lion’s Coach. P.28 SERVICE FROM SPACE Upping their game: MAN PrimeServ is using state-of-the-art sensor technology to monitor more than 200 power plants and marine engines worldwide, empowering customers like Stena Line to achieve optimum performance. P.32 WASTE TO WARMTH Generating eco-friendly energy: a MARC4 turbine from MAN Diesel & Turbo will enable 25,000 households in the Ruhr region to be supplied with more district heating from waste recycling than was previously possible. Soon blocked: late afternoon sees vehicle after vehicle line up on Munich’s Ludwigstraße. IN MOTION A CITY 5 A model for the future: separate bus lanes guarantee that the buses can get through quickly Munich and are set to be converted into bus corridors. p.m. 4:30As soon as people start to fi nish work, things get really busy. Because Munich is expanding constantly, the number of cars fighting for space on its roads is also rising, which drives up pollutant emissions and makes the Bavarian capital even noisier. The City of Munich’s public utilities provider and its transportation operator are working to solve this problem. Together with the MAN Transport Solutions consultancy, they are devising a future-proof concept to further expand the public transportation network. IN MOTION 6 Working together toward an electric bus fleet: Stefan Sahlmann, Head of MAN Transport Solutions, Ralf Willrett, Head of MVG’s Bus division, and Ingo Wortmann, SWM Director for Mobility and respon- sible for MVG (from left to right). Stefan Sahlmann gets to the heart of the attractive and effi cient, we are focusing on complex task ahead: “The future of Munich’s dedicated busways and separate lanes for pub- transportation infrastructure lies in continu- lic transportation, to name a few.” ous renewal, in expanding the structures that Willrett describes this process, which are already in place, and in switching to new MVG and SWM have initiated and which they drive types.” An industrial engineer by trade, hope to bring to completion with the help of he is heading up the team at MAN Transport MAN Truck & Bus, as the dawn of a new era. Solutions, a consultancy created by MAN Truck After all, simply replacing combustion engines & Bus to support transportation companies and with electric ones and swapping diesel tanks fl eet operators in navigating the path to alter- for battery packs is not enough. Electrifying native drives – be it for their buses or trucks. A an entire public transportation network is a team of six people develops solutions for infra- mammoth task. “We are taking into account structure and fl eet design, ascertains energy all aspects of the transition,” Sahlmann, Head needs, and works out strategies to meet these of MAN Transport Solutions, explains. This needs in a cost-effi cient way. The experts are includes planning new routes and optimizing also happy to answer any questions about existing vehicle schedules – i.e., the number of maintenance concepts and service. As part journeys each vehicle has to complete. Charge of this endeavor, MAN Truck & Bus, Munich’s management and new operating procedures transportation operator MVG, and its public also have a key role to play. utilities provider SWM have entered into an innovation partnership. A system transformed MVG has plans to gradually electrify its The MAN Truck & Bus portfolio already entire bus fl eet. This requires electric vehi- includes vehicles powered by gas as well as cles to become just as cost-effi cient as their hybrid solutions and so-called bus trains. diesel-powered counterparts, one step at a These buses with trailers attached to them are time. “This may happen by 2030 and is a big 23 meters long and can accommodate around step for us,” Ralf Willrett, Head of the Bus divi- 130 passengers, boosting the city’s transpor- sion at MVG, says. Another goal is to make tation capacity by up to 30%. Around 50 bus public transportation even more fl exible and trains from MAN Truck & Bus are now in oper- attractive, especially for people who still prefer ation in Munich, dispatched primarily to relieve driving. Willrett explains that in light of these pressure on heavily frequented routes. How- challenges, the partners are striving for a con- ever, Stefan Sahlmann stresses that at the tinuous expansion of the existing network. end of the day, the decisive factor in creating Ingo Wortmann, SWM Director for Mobility future-proof public transportation is electric and responsible for MVG, says: “The existing mobility. MAN Truck & Bus’s fi rst generation transportation network is being pushed to its of electric city buses is due to launch before limits, so we believe urgent action is required. 2020 – after which the buses will also be in In order to make our services even more operation on the roads of the Bavarian capital. TEMPO – The 2017 Annual Report Magazine 7 The bus train can accommodate 130 people: the number of these blue tractor vehicles and trailers is on the rise in the Bavarian capital. Raising the profile: MVG plans to offer its customers an even more extensive network in the future. TEMPO – The 2017 Annual Report Magazine 9 The MVG experts and the team at MAN Transport Solutions come together in regular workshops in a quest to fully electrify Full of energy: setting the Munich’s bus operations. Sahlmann is clearly course for the future confi dent: “If you want to master the complex requirements of electric mobility, you have to prepare for the introduction of electric buses Electric platform for trucks and buses Growing cities, booming online sales – no won- meticulously and plan their deployment exten- der alternative drives that make intercity traffic sively.” The work his team does is based on less noisy and lower emissions are becoming data – mobility data. “The fi rst thing we need increasingly important. MAN Truck & Bus is fo- is a fundamental analysis: how do the buses cusing on electric drives when it comes to last- drive, how are they used? What parameters mile distribution and urban transportation. The have a particularly strong impact on how much company is working on a comprehensive range energy they use? What does the profi le of the of electric vehicles for medium- and heavy- duty journey look like? How much traffi c is there on distribution, as well as for city buses. At the that route at a particular time of day? We basi- heart of these vehicles is the electric drive- cally have to map the worst-case scenario,” train. It is designed in a way that means it can Sahlmann explains. The worst-case scenario be used to power both distribution trucks and is a traffi c jam, which is where energy use is city buses of the future electric generation as a particularly high. universal modular element. Naturally, an electric vehicle can get stuck in a traffi c jam the same way a car running on fuel can, which is why the MAN Transport A fi eld test for electric trucks Solutions team is focusing on developing solu- The Council for Sustainable Logistics (Council tions to make public transportation not just für nachhaltige Logistik – CNL) and MAN Truck more eco-friendly, low-emission, and quieter, & Bus are working together to develop electric but also more intelligent.